Shareholders of International Breweries approve $379.9 million loan-to-equity conversion
International Breweries' shareholders have approved a $379.9 million loan from its majority shareholder, AB InBev Nigeria Holdings BV, to repay a loan obtained from Citibank Abu Dhabi.
At their recent Extraordinary General Meeting, the shareholders also sanctioned the conversion of the loan into equity through a planned rights issue. The resolutions filed with the Nigerian Exchange Limited include the following:
“Approval of Shareholders Loan: That the convertible loan of $379.9m from AB InBEV Nigeria Holdings BV ('Shareholder Loan'), in respect of the repayment of the loan obtained by the Company from Citibank Abu Dhabi, is hereby accepted and approved in accordance with the terms and conditions presented by the Management of the Company.”
Conversion of the loan to equity: Subject to complying with applicable regulatory requirements, the Directors are authorized to allocate all sums owed by the Company to AB InBev Nigeria Holdings BV under the Shareholders Loan, for the purchase of shares subscribed for by AB InBev Nigeria Holdings BV in the company’s Rights Issue, as approved by the Shareholders of the Company."
Previously, International Breweries shareholders greenlit the company's proposed rights issue.
In January, the board of directors at IB Plc announced it was considering a rights issue and a boost to its share capital.
As of the end of December 2023, the brewery's issued share capital comprised 26,862,069,000 ordinary shares, each valued at 50 kobo.
Brauhaase International Management GMBH and its parent company, AB InBev Nigeria Holding BV, held an 87.29% equity interest in the firm.
According to its audited 2023 results, IB Plc's revenue increased to N260.59 billion from N218.65 billion in 2022. However, the company reported a loss of approximately N70.03 billion, primarily due to both realised and unrealised foreign exchange losses.
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